Nvidia reported record sales and profits that exceeded Wall Street’s expectations, bringing a sigh of relief to investors following concerns that the GPU maker was overvalued and that the tech market was increasingly headed toward an AI bubble.

Nvidia’s sales grew 62 per cent year-over-year to $57 billion in the October quarter, beating Wall Street’s expectation of $54.9 billion and signalling that demand for its AI chips remains strong, dismissing questions about whether investments in AI infrastructure will ever be recouped. The company posted profits of $31.9 billion, up 65 per cent from the year-ago quarter and also slightly above expectations.

Shares of Nvidia , the world’s most valuable public traded company, rose over 6.5 per cent in after-hours trading Thursday (India time).

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